Origins and Evolution of Rice Business Plan Competition

Many MBA programs host or participate in competitions to let their students test their skills. Business plan competitions help foster entrepreneurial skills by challenging participants to ideate and develop comprehensive business plans from scratch. The Rice Business Plan Competition (RBPC) is the juggernaut of this type of student startup competition.

Brad Burke, the Rice Alliance for Technology and Entrepreneurship Executive Director, remembers the competition’s evolution. “We started the Rice Business Plan Competition in 2001 with a mere offering of $10,000 to nine teams,” Brad says. (00:46)

Fast forward two decades and the competition boasts over $1 million in prizes, with 42 teams competing for the coveted top positions in 2023.

It’s not just the prize money that positions RBPC as the world’s largest and richest business plan competition but the sheer magnitude of talent, innovation, and entrepreneurial spirit it draws.

Since 2001, 826 teams have graced the RBPC stage. An impressive 532 ventures launched from this elite group, with 268 successful startups, including 56 successful exits (acquisitions or IPOs). The competition has made waves across diverse industries and generated numerous employment opportunities. From 2001 to 2022, ventures that participated in the RBPC have raised more than $5.5 billion in capital.

Broadening Horizons: Diversity and Global Participation

Rice University Jones Graduate School of Business hosts the competition, but that doesn’t limit who can join. Brad clarifies the common misconception, “Many people think the competition is exclusive to Rice University. However, it is open to all universities worldwide.” (01:01). 

Diversity in teams and ideas has been a growing trend at the RBPC. The competition, reflecting a broader shift in the startup ecosystem, has made significant strides in promoting inclusivity. 

 “This year, roughly 50% of our teams included women, and about 25% had underrepresented individuals on their teams,” Brad says. (08:04) 

The competition’s dedication to diversity is also in the composition of its judging panel. Initially, only about 6% of the judges were women, but the competition boasts a significant increase in female representation. Women now make up 35 to 40% of the judging panel — with an aim for that to continue growing to reflect the diverse ecosystem in Houston.

Crafting Success: Judging, Trends, and Key Ingredients

Over the years, the ethos of the competition and its participants has shifted noticeably. In its nascent years, many participants viewed their business plans as mere academic exercises. Today, however, Brad notices a fierce commitment among teams. “Most of the teams now are dedicated to launching their businesses upon graduation,” he says. (02:45)

This transition from academic endeavor to genuine business intent underscores the competition’s role as a startup launchpad.

Another critical component of the competition’s success is its judging panel. Comprising over 350 experts, including investors, seasoned entrepreneurs, and advisors, they bring a wealth of experience and discernment. 

“Two-thirds of these judges are investors. Their primary activity is investing in early-stage companies, making them ideal evaluators for the competition,” Brad says. (05:11)

The nature of the startups in the RBPC has also evolved. Brad observes a strong inclination towards tech startups. From clean-tech and sustainability initiatives to medical devices and AI-driven software, the range of innovations presented represents the current trends in venture capital funding.

RBPC Success Stories and Legacy

Several success stories have emerged from the RBPC. Last year’s winners, Flux Works from Texas A&M University, captivated judges with their innovative magnetic gear technology. By reducing friction, their invention promises enhanced energy efficiency and longevity for industrial equipment. 

However, it’s not only the winners who bask in the limelight. Numerous teams that didn’t clinch the top spot have still gone on to achieve remarkable success. 

“One that I’m fond of is a team that competed out of Carnegie Mellon University that had a new technology for converting trucks, these are the long haul trucks going down the highway, converting the trucks to either hybrid or electric engines,” Brand says. “The company met its initial investor at the competition. They only finished third, and then they went on to conduct their IPO just a couple years ago.” (11:05)

Such stories showcase the RBPC as a platform nurturing the next generation of entrepreneurs, ensuring innovation, dedication, and ambition find their rightful place in global business.

As the Rice Business Plan Competition continues to evolve and inspire, its next iteration will happen soon. From April 4-6, 2024, Rice University in Houston, Texas, US, will once again become a global hub for innovative minds. 

This is your opportunity to be part of an event that has fueled innovation and entrepreneurship for over two decades. Start preparing now. Get your team together and review the Rice Business Plan Competition application preview.